Destination Maternity Corporation (Nasdaq: DEST) announced today that it has prepaid $10 million of its senior secured Term Loan due March 2013, reflecting the Company's priority to continue to deleverage its balance sheet. On November 18, 2008, the Company had announced that it intended to prepay $10 million of its Term Loan prior to the end of the first quarter of fiscal 2009 (December 31, 2008). The $10 million of Term Loan prepayments the Company has made since that announcement include a $622,000 prepayment required under the annual excess cash flow provision of the Term Loan. Pursuant to the provisions of the Term Loan, the prepayments were made without any prepayment premium or penalty. The Company's indebtedness under the Term Loan is now $65.7 million.

Ed Krell, Chief Executive Officer of Destination Maternity Corporation, noted, "We are very pleased to complete our $10 million Term Loan prepayment, consistent with our previously announced intention per our November 18, 2008 press release. We believe this action indicates our continued commitment to increase shareholder value and deleverage our
balance sheet, and reflects our continued confidence in our generation of free cash flow despite a challenging overall economic environment."

    Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel, using its custom TrendTrack(TM) merchandise analysis and planning system as well as its quick response replenishment process to "give the customer what she wants, when she wants it." As of November 30, 2008, Destination Maternity Corporation operates 1,037
maternity locations, including 754 stores, predominantly under the tradenames Motherhood Maternity(R), A Pea in the Pod(R), Mimi Maternity(R), and Destination Maternity(R), and sells on the web through its DestinationMaternity.com and brand-specific websites. In addition, Destination Maternity Corporation distributes its Oh Baby by Motherhood(TM)
collection through a licensed arrangement at Kohl's(R) stores throughout the United States and on Kohls.com.
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